Intercompany loan

Intercompany loan

Loan made by one unit of a corporation to another unit of the same corporation.

Intercompany Loan

A loan in which both the lender and the borrower are divisions of the same corporation. Such a loan may have tax consequences, depending on the jurisdiction.
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7 billion intercompany loan since GM Korea is paying 200 billion won annually as interest," Rep.
Recent developments at certain subsidiaries include reduced funding access (higher cost and/or shorter maturity), increased intercompany loan activity and a reported delay in aircraft lease payments by certain HNA-owned airlines.
1bn term loan borrowing, repay borrowings under its revolving credit facility and the intercompany loan agreement, general partnership purposes, acquisitions, capital as well as payment of distributions.
5 million) owed to HealthBaby Hong Kong, which it will treat as an intercompany loan owing to its new unit.
AL has also provided an intercompany loan to RAF at completion of GBP 57m to re-finance RAF's existing finance liabilities.
Virtual Cash Management will help treasurers to rationalise and simplify account structures and to set-up in-house bank structures with advanced capabilities including invoice matching, optimised reconciliation, internal transfers, and an Intercompany Loan Administration.
The implementation of this movement of funds is conducted through an intercompany loan," said Joe Ng, Asia Pacific head of Renminbi payments product management for Global Transaction Banking at Deutsche Bank.
The rating agency also added that the financial strength rating for National Public Finance Guarantee Corp, which was raised to BBB from BB, reflects "the company's strengthened capital adequacy position and financial risk profile following MBIA Corp's repayment of the intercompany loan.
TTM anticipates the transaction will generate approximately $84 million net, and expects to use about $40 million of the proceeds to repay an intercompany loan to SYE.
1502-13(g)(7)(ii), Example (1), interest payments made on an intercompany loan are treated as interest income to the lender and interest expense to the borrower on a separate company basis.
Money was then paid into Intellectual Property UK Ltd from Greenfield Internatonal Ltd as an intercompany loan.
The ECJ decision in EDM (2) clearly states that the grant of an intercompany loan is of an auxiliary nature and is not part of the taxpayer's primary business activity.